Saudi Arabia will ensure the oil markets are adequately supplied to offset loss of Iranian barrels following the US cancellation of sanctions waivers to Tehran’s oil buyers.

"Saudi Arabia will coordinate with fellow oil producers to ensure adequate supplies are available to consumers while ensuring the global oil market does not go out of balance,” Saudi energy minister Khalid Al Falih said in a statement on Monday.

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The US state department announced the cancellation of waivers to the eight nations that had continued to import oil from Iran after sanctions were imposed against the Islamic Republic in November. Washington said Iran’s exports, which averaged just under 1 million barrels per day in March, will be plugged collectively by the US, Saudi Arabia as well as the UAE.

Saudi Arabia will over the next few weeks consult with other proucing nations as well as consumers “to ensure a well-balanced and stable oil market”, said Mr Al Falih.

Saudi Arabia, the biggest producer within Opec, and Russia, the largest sovereign producer outside the group, are part of the Opec+ alliance set up to cut 1.2 million bpd of supply from the markets to bolster oil prices. The group is set for a technical committee meeting next month in the Saudi city of Jeddah.

Oil prices have responded bullishly to the cancellation of waivers, with Brent spiking by 3 per cent on Monday, trading at $73.94 at 6:41pm UAE time.